Kuznets Curve The Kuznets curve, formulated by Simon Kuznets in the mid-1950s, argues that in preindustrial societies, almost everybody is equally poor so inequality is low. Inequality then rises as people move from low-productivity agriculture to the more productive industrial sector, where average income is higher and wages are less uniform. But as a society matures and becomes richer, the urban-rural gap is reduced and old-age pensions, unemployment benefits, and other social transfers lower inequality. Reading : The Kuznets Curve And Inequality Over The Last 100 Years Jacques Putzeys July 2018

Kuznets Curve in 2030 We are in the pre-fourth industrial revolution and inequality is relatively low, at least in the developed countries. Inequality will rise as society move to a high technology and data driven economy (The price of invention ), where income is higher and wages are less uniform for those with the appropriate skills and access to information and communication tools. As our society matures and becomes richer, the education and information gap is reduced, inequality will diminish again. IS THIS THE RIGHT ASSUMPTION ? HOW TO ACT ? Jacques Putzeys July 2018